Property Tax Reform-pr-PASenate-Rs-05
Source, Press release, 9/14/2005 :CAROL MARAVIC, Phone: (717) 787-6725 :VICKI WILKEN Phone: (717) 787-7305 SOUTHEAST SENATORS UNVEIL TAX REFORM PLAN TO EASE SKYROCKETING PROPERTY TAXES Harrisburg, PA.--Eight Republican senators representing Southeastern Pennsylvania today announced a major tax reform package aimed at giving homeowners “Independence from Property Taxes.” During a news conference at the Valley Forge Convention Center, the senators said they will push for legislation to lower property taxes, provide additional tax relief to senior citizens, and enable school districts, municipalities and counties to shift from property taxes to income taxes. The package also includes spending controls that will make state government live with the same economic realities that taxpayers face on a daily basis. Taking part in the announcement were Senator Joe Conti (R-Bucks), Senator Robert Tomlinson (R-Bucks), Senator Robert Thompson (R-Chester), Senator Ted Erickson (R-Delaware), Senator Dominic Pileggi (R-Delaware), Senator Stewart Greenleaf (R-Montgomery), Senator John Rafferty (R-Montgomery), and Senator Robert Wonderling (R-Montgomery). “After Pennsylvania's school districts made their decisions about Act 72, my fellow senators and I from the Southeast went to work and created an agenda to achieve independence from school property taxes once and for all,” said Senator Conti. “The policies that we're proposing are significant and achievable, and they'll work not only in the districts that we represent, but across the Commonwealth.” Senate Appropriations Committee Chairman Robert Thompson said he and his colleagues will issue an immediate call to action for the General Assembly to take up the legislation as part of its deliberations during the upcoming fall session. “We realize there are many specific issues that still must be resolved,” Senator Thompson said. “However, this package provides an overall framework from which we can work.” Among the legislation in the package are proposals to: * Freeze property taxes * Replace property taxes by shifting to more equitable taxes * Provide tax relief for seniors on fixed incomes * Give taxpayers greater control over local tax decisions * Limit growth of state spending The senators emphasized that the package is aimed at providing relief to homeowners who have seen their property taxes skyrocket in recent years. "School property taxes have increased by as much as 60% in my district just during the past 5 years," Senator Wonderling said. "We must act now to provide relief to residents who are being taxed out of their homes." Senator Rafferty echoed that concern, noting that skyrocketing property taxes are making home ownership impossible for many, including young people and seniors. “We need to control spending and look at a fairer way to fund our schools,” he said. Senator Pileggi noted that the package also requires spending controls at the state level. Senate Bill 4, the “Taxpayer Fairness Act,” would hold state spending to the rate of inflation. It would also set aside all surplus revenues into the state's Rainy Day Fund for use in times of economic necessity. "Working people across Pennsylvania have to live within a budget and so should state government," Pileggi said. According to the National Conference of State Legislatures, 30 states already have spending controls, revenue controls or both. Pennsylvania is in the minority of states which have no spending or revenue controls. In addition to curbing spending, the package also would give taxpayers more control over the mix of taxes they choose to replace property taxes. Senator Ted Erickson said his bill would replace the regressive real estate property tax as the primary source of funds for the school districts by allowing school districts, as well as counties and municipalities, to generate funds by adopting either an Earned Income Tax (EIT) or a Personal Income Tax (PIT). “The financial needs and the income base in each school district will vary; therefore, the level of taxation should be permitted to vary, and taxpayers should have the final say in what new taxes are implemented,” Senator Erickson said. The package also provides additional help to seniors on fixed incomes. One bill, supported by Senator Stewart Greenleaf, would use anticipated slots revenue to expand the Property Tax/Rent Rebate Program. “Using this revenue, we can provide property tax and rent rebates to about one million older and disabled Pennsylvanians of modest income,” Greenleaf said, noting that the current program serves about 330,000 citizens. My proposal would benefit those most affected by property tax and rent increases—senior citizens on modest fixed incomes.” Another bill sponsored by Senator Tomlinson would freeze property taxes for senior citizens. In addition, the legislation would apply retroactively to tax years beginning January 1, 2004, which would provide immediate property tax relief for our older residents. "The revenues from expanded gaming in the Commonwealth have given us the opportunity to help our seniors who have been hardest hit by property tax increases,” Senator Tomlinson said. “We need to take action now to help our seniors deal with this significant financial burden." Links * Property Tax Reform